AXA Rosenberg said it agreed to pay $217 million to cover investor losses as well as a $25 million civil penalty, in a settlement with the Securities and Exchange Commission regarding a coding error with its risk model, the California investment management firm said Thursday.

The SEC charged three of the firm’s entities--AXA Rosenberg Group LLC (ARG), AXA Rosenberg Investment Management LLC (ARIM), and Barr Rosenberg Research Center LLC(BRRC)--with securities fraud for concealing a significant error in the computer code of the quantitative investment model that they use to manage client assets, the agency announced in a statement.

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